De Grey Mining Limited (ASX: DEG) is based in Subiaco, Australia. It is a mining company dealing in the business of exploring base and precious metals.
The company presented at the Sydney Resources round-up in May 2019; wherein it laid down its results for 2019 and discussed its corporate overview and visions. The company also presented details of few of its gold provinces and economic statistics.
The Toweranna project consists of high-grade gold in quartz veins and is undergoing the RC and diamond drilling along with metallurgy test work. With an approximate diameter of 300m and mineralisation to 425m, the current resource stands at 143.9koz @ 2.2g/t. More results on the ongoing project are pending.
The Withnell project, awaiting more results, has a 6km trend and resource at 377.3koz. 4 High grade lodes are targeted under shallow o/p resource, and the results of the drilling are yet to arrive.
The 150km long Emerging Archaean gold province comprises of more than 200km shear zones with 1.4Moz in resources and targeting extensions. The systematic exploration is just getting started in this region.
The Pilbara project, is targeting 2.0Moz by end of the year 2019 and further, 3.0Moz.
Apart from these projects, the company is also targeting regional prospects and drill testing are in process. The company is using improved metallurgy and a simplified processing design to ace its processes.
DEG aims to transition to new gold producers. With significant Australian gold growth projects, the company has great control over the emerging gold market. Their vision is to discover, develop and produce more gold to make the desired transition. Technically speaking, they have 1.4Moz resource with drilling to define 3.0Moz. The PFS is also in progress, with a scale increase to 2Mtpa.
The major shareholders of the company include Kirkland Lake with 9.2% stake, DGO Gold with 6.2% and Management with 5.2% stake in the company.
On May 7th, 2019, DEG announced that results on ore sorting test work which took place from samples of the Toweranna gold deposit, Pilbara Gold Project, Western Australia are positive. The tests were taken by TOMRA Sorting Pty Ltd, a leading ore sorting specialist from New South Wales, Australia.
Quartz only veining, Quartz-sulphide veining, Sediments, Granitoid and Altered granitoid were the rock types provided for the tests.
After assessment of each, TOMRA decided on the most appropriate sorting processes. Mineralised quartz and sulphide vein material were separated from non-mineralised host granitoid and sediments. The drill core was then broken down (20mm to 100mm dimensions), post which the rock types were combined into one composite sample. This sample underwent X-Ray transmission using laser scanning.
The results of the test showed negligible sulphide minerals left in the waste product. The low quartz observed indicated very low ore loss. More tests work would take place on larger sample sizes to affirm the grade distribution, crushing parameters and economic viability of this process.
The potential impact of ore sorting at Toweranna is projected to improve project economics and increase gold production via facilitation of bulk mining and a possible reduction in transport costs. Rejection of waste material leads to lower processing costs.
As on 7 May 2019 at 3:06 PM AEST, the stock is priced at A$0.083, trading up 3.75% compared to its last day’s trading price.
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